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Income Tax Appellate Tribunal, KOLKATA BENCH ‘SMC’, KOLKATA
Before: Dr. Manish Borad & Shri Sonjoy Sarma]
ORDER
Per Sonjoy Sarma, JM:
The present appeal has been preferred by the assessee against the order dated 17.01.2023 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee has raised the following grounds of appeal:
Ld. A.O. Wrongly Addition business turnover of Rs.27,56,325/- which amount purely transferred from my SB A/C to C/A, NEFT Return and wrong entry of bank authority only. Thereafter, Ld.A.0. arbitarily rejected my audited books of account without any verification and enhanced net profit as @ 8% instead of @ 5.10% by applied U/S 145(3) of the IT Act 1961 and also addition on account of profit of Rs.6,45,800/- On the other hand Ld. A.0. wrongly addition of land purchase value of Rs. 15,24,985/- which was actually invested out of Appellant's book profit and bank loan amount through SB A/C and O.D. A/C and by cash payment also. Overall the Ld.CIT Appeal also erred in passing order U/S 250 of IT Act 1961 without giving proper opportunity for full submission inspite of appellant's partial" submission dated 27-12-2022.”
Brief facts of the case are that the assessee filed its return of income on 09.01.2019 declaring income of Rs. 7,52,480/- and the return of the assessee was processed u/s 143(1) of the Act.
Bibhas Chandra Samanta The case of the assessee was selected for complete scrutiny assessment under Cass followed by notices issued u/s 143(2) and 142(1) of the Act. In response to notices issued by the AO, assessee filed its reply from time to time before the ld. AO. During the assessment proceeding, ld. AO noticed that the total turnover of the assessee was Rs. 174,43,753/- whereas assessee had shown in its return of income at Rs. 146,87,428/- only. The ld. AO had given ample opportunities to the assessee during the assessment proceeding for justify such difference made in the return filed by the assessee. However, assessee has failed to comply with the same and the ld. AO after rejecting the books of account filed by the assessee and enhanced the net profit of the assessee @ 8% of Rs. 174,43,753/- i.e. Rs. 13,95,498/-. Accordingly, the addition made by the AO arrived in the hands of assessee at Rs. 6,45,800/- (Rs. 13,95,498/- - Rs. 7,49,698/-). Further, the ld. AO noticed that the assessee had made investment of Rs. 15,24,985/- for the purchase of land and assessee was failed to furnishing the details before the ld. AO. Thus, he further added a sum of Rs. 15,24,985/- in the hands of assessee.
Dissatisfied with the above order, assessee preferred an appeal before the ld. CIT(A). However, the assessee could not able to succeed before the ld. CIT(A) as the assessee failed to prove its case by furnishing proper documents before the ld. AO and accordingly appeal of the assessee was dismissed.
Bibhas Chandra Samanta
Aggrieved by the above order, assessee preferred an appeal before the Tribunal.
At the outset, ld. AR submitted before us that paper book containing almost 125 pages to substantiate its argument on various issues which are raised before us. Since such documents furnished by the assessee could not be able to place before the authorities below due to illness of the assessee and due to absence of those documents, the case was decided against the assessee and therefore, he prayed before the bench to remand back the file to the AO for fresh adjudication of the issues involved in the present appeal after examining the necessary documents placed before him at the time of hearing.
We after hearing the rival submission of the parties and on perusal of the material available on record. We find that assessee could not able to submit necessary documents before the authorities below to substantiate its claim. Therefore, in view of the above facts it is necessary to give one more opportunity to the assessee to submit its necessary documents before the AO to substantiate its claim.
Under these given facts and circumstances, we restore the matter in the instant appeals to the file of ld. AO for de novo adjudicating in accordance with law after considering the submission made by the assessee for which reasonable opportunity of being heard should be provided. The assessee is also directed to remain vigilant and file necessary documents in Bibhas Chandra Samanta support of its grounds of appeal and should not take any further adjournment, unless otherwise required for reasonable cause. In case after providing sufficient opportunity to the assessee, there is no compliance before the ld. AO, the ld. AO can proceed to pass an order in accordance with law.
In the result, the appeal of the assessee is allowed for statistical purposes.